UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-QSB
[X] Quarterly Report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the quarterly period ended March 31, 2000
[ ] Transition Report pursuant to 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period from ------- to --------
Commission File Number 0-27507
-------
CORPORATE DEVELOPMENT CENTERS, INC.
--------------------------------------------
(Exact name of small Business Issuer as specified in its charter)
Nevada 88-0350448
- ------------------------- ------------------
(State or other jurisdiction of IRS Employer Identification No.)
incorporation or organization)
1332 E. Martha Dunyon Circle
Draper, Utah 84020
- ----------------------------------- ---------------
(Address of principal executive offices) (Zip Code)
Issuer's telephone number, including area code: 801-576-0814
None
------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since last
report)
Check whether the issuer (1) filed all reports required to be filed
by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the issuer
was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days [ ] Yes [X] No
State the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date:
1,234,250 Shares of $.001 par value Common Stock outstanding as of
February 5, 2001.
PART 1 - FINANCIAL INFORMATION
Item 1. Financial Statements
The accompanying unaudited financial statements have been prepared in
accordance with the instructions to Form 10-QSB and Item 310 (b) of
Regulation S-B, and, therefore, do not include all information and
footnotes necessary for a complete presentation of financial
position, results of operations, cash flows, and stockholders' equity
in conformity with generally accepted accounting principles. In the
opinion of management, all adjustments considered necessary for a
fair presentation of the results of operations and financial position
have been included and all such adjustments are of a normal recurring
nature. Operating results for the three months ended March 31,
2000 are not necessarily indicative of the results that can be
expected for the year ending December 31, 2000.
2
Ted A. Madsen
CERTIFIED PUBLIC ACCOUNTANT
684 EAST VINE STREET #3
MURRAY, UTAH 84107
TELEPHONE (801) 268-2632
FAX (801) 262-3978
TED A. MADSEN, CPA MEMBER: AMERICAN INSTIUTE OF
CERTIFIED PUBLIC ACCOUNTANTS
UTAH ASSOCIATION OF
CERTIFIED PUBLIC ACCOUNTANTS
CERTIFIED PUBLIC ACCOUNTANT
Board of Directors
Corporate Development Centers, Inc.
Salt Lake City, Utah
I have reviewed the accompanying balance sheets of Corporate
Development Centers, Inc. (a development stage company) as of
March 31, 2000 and March 31, 1999 and the related
statements of operations and cash flows and changes in
stockholders' equity (deficit)for the three months then ended
and for the period from the date of inception on August 29, 1995
to March 31, 2000 in accordance with statements on standards
for Accounting and Review Services issued by the American
Institute of Certified Public Accountants. All information
included in these financial statements is the representation of
the management of Corporate Development Centers, Inc.
A review consists principally in inquiries of Company personnel
and analytical procedures applied to financial data. It is
substantially less in scope than an audit in accordance with
generally accepted auditing standards, the objective of which is
the expression of an opinion regarding the financial statements
taken as a whole. Accordingly, I do not express such an opinion.
Based on my reviews, I am not aware of any material modifications
that should be made to the accompanying financial statements in
order for them to be in conformity with generally accepted
accounting principles.
/s/ Ted A. Madsen
January 31, 2001
3
FINANCIAL STATEMENTS
CORPORATE DEVELOPMENT CENTERS, INC.
(A DEVELOPMENT STAGE COMPANY)
BALANCE SHEET
March 31, 2000 and 1999
ASSETS
2000 1999
-------------- ---------------
Cash in bank $ 6,955 $ 1,846
______________ _______________
TOTAL ASSETS $ 6,955 $ 1,846
============== ===============
LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT)
Liabilities
Loan from shareholder $ 15,000 $ -
-------------- ---------------
Total Liabilities 15,000
Stockholders' Equity
Common stock, authorized 25,000,000 shares
At $.001 par value, issued and outstanding
1,234,250 shares 1,234 1,234
Additional paid-in capital 50,859 49,659
(Deficit) accumulated during the
development stage (60,138) (49,047)
-------------- ---------------
Total Stockholders' Equity (Deficit) (8,045) (1,846)
TOTAL LIABILITES & STOCKHOLDER'S
EQUITY (DEFICIT) $ 6,955 $ 1,846
============== ===============
The accompanying notes are an integral part of these financial statements
4
CORPORATE DEVELOPMENT CENTERS, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF OPERATIONS FOR THE THREE MONTHS ENDED
MARCH 31, 2000 AND 1999
(With Cumulative Figures From Inception)
Three Months Three Months
Ended Ended From Inception
March 31, March 31, August 29, 1995 to
2000 1999 March 31, 2000
------------ ------------ ------------------
Rental Income $ - $ - $ 17,061
Expenses
Advertising - - 1,657
Amortization - 3,170
Cleaning - - 1,803
Consulting - - 3,605
Depreciation - - 2,477
Fees 350 - 1,433
Insurance - - 414
Office Expenses - 21 3,124
Rent 300 300 28,609
Professional Fees 9,502 1,645 17,255
Telephone - - 5,731
Utilities - - 1,200
------------ ------------ ------------------
Total Expenses 10,152 1,966 70,478
Other Income (Expense)
Loss on sale of
office furniture - - (5,091)
------------ ------------ ------------------
Total Other Income
(Expense) - - (5,091)
------------ ------------ ------------------
Net (loss) before cumulative
Effect of change in
accounting Principle (10,152) (1,966) (58,508)
Cumulative effect on prior
years (to December 31,
1998) of expensing
unamortized organization
costs- Note B - (1,630) (1,630)
------------ ------------ ------------------
Net (loss) $ (10,152) $ (3,596) $ (60,138)
============ ============ ==================
Net (loss) per common share:
(Loss) before cumulative
effect of change in
accounting principle $ (0.01) $ (0.01)
Cumulative effect on
Prior years (to December)
31, 1998) of expensing
unamortized organization
costs 0.00 0.00
------------ ------------
Net (loss) $ (0.01) $ (0.01)
============ ============
Weighted average shares
Outstanding 1,234,250 1,234,250
============ ============
The accompanying notes are an integral part of these financial statements
5
CORPORATE DEVELOPMENT CENTERS, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)
FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND MARCH 31, 1999
(With Cumulative Figures From Inception)
Additional Accum-
Common Stock Paid-in ulated
Shares Amount Capital (Deficit) Total
-------
Balance
August 29, 1995 - $ - $ - $ - $ -
Issuance of
common stock
for cash @ .01
per share
on August 9, 1995 800,000 800 7,200 8,000
Issuance of
common stock
for consulting
services rendered
valued at $2,000
@ .01 per share on
August 9, 1995 200,000 200 1,800 2,000
Net (loss)
for period - - - (1,920) (1,920)
--------- --------- --------- -------- ----------
Balance
December 31, 1995 1,000,000 1,000 9,000 (1,920) 8,080
Issuance of
common stock
for cash @.08
per share on
March 26, 1996 534,250 534 42,206 42,740
(Less) offering
costs (12,147) (12,147)
Net (loss)
for period - - - (21,567) (21,567)
--------- -------- -------- --------- --------
Balance,
December 31, 1996 1,534,250 1,534 39,059 (23,487) 17,106
Net (loss)
for period - - - (15,228) (15,228)
--------- --------- --------- -------- ----------
Balance
December 31, 1997 1,534,250 1,534 39,059 (38,715) 1,878
Issuance of
Common Stock
for cash @.05 per
share on November
11, 1998 200,000 200 9,800 10,000
Cancellation
of Common shares
on November 11, 1998 (500,000) (500) 500
Net (loss)
for period - - - (6,736) (6,736)
Balance
December 31, 1998
--------- --------- --------- -------- ----------
1,234,250 1,234 49,359 (45,451) 5,142
The accompanying notes are an integral part of these financial statements
6
CORPORATE DEVELOPMENT CENTERS, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)
FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND MARCH 31, 1999
(With Cumulative Figures From Inception)
Additional Accum-
Common Stock Paid-in ulated
Shares Amount Capital (Deficit) Total
--------- ------ ---------- ------- -----
Balance
December 31, 1998 1,234,250 1,234 49,359 (45,451) 5,142
Additional paid
in capital
contributed by
shareholder 300 300
Net (loss) for
Period - - - (3,596) (3,596)
--------- ------ ---------- ------- -----
Balance
March 31, 1999 1,234,250 1,234 49,659 (49,047) 1,846
Additional
paid in capital
contributed by
shareholder 900 - 900
Net (loss) for
period - - - (939) (939)
--------- ------ ---------- ------- -----
Balance,
December 31, 1999 1,234,250 1,234 50,559 (49,986) 1,807
--------- ------ ---------- ------- -----
Additional
paid in capital
contributed by
shareholder 300 300
Net (loss) for
period - - - (10,152) (10,152)
--------- ------ ---------- ------- -----
Balance,
March 31, 2000 1,234,250 $ 1,234 $ 50,859 $(60,138) $ (8,045)
========= ====== ========== ======= =====
The accompanying notes are an integral part of these financial statements
7
CORPORATE DEVELOPMENT CENTERS, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 1999
(With Cumulative Figures From Inception)
Three Months Three Months
Ended Ended From Inception
March 31, March 31, August 29, 1995 to
2000 1999 March 31, 2000
------------ ------------ ------------------
CASH FLOWS FROM
OPERATING ACTIVITIES
Net Loss $ (10,152) $ (3,596) $ (60,138)
Non-cash items included
in net loss
Loss of sale of
Equipment - - 5,091
Amortization - 1,630 4,800
Depreciation - - 2,477
Rent 300 300 1,500
Decrease in stock
subscription receivable - 3,500 -
------------ ------------ ------------------
NET CASH FROM (USED) BY
OPERATING ACTIVITIES (9,852) 1,834 (46,270)
CASH FLOWS FROM INVESTING
ACTIVITIES
Organizational costs - - (2,800)
Purchase of equipment - - (13,668)
Proceeds from sale of
equipment - - 6,100
------------ ------------ ------------------
NET CASH (USED) BY
INVESTING ACTIVITIES - - (10,368)
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from sale of
common stock - - 48,593
Loan from shareholder 15,000 - 15,000
------------ ------------ ------------------
NET CASH FROM FINANCING
ACTIVITIES 15,000 - 63,593
NET INCREASE IN CASH 5,148 1,834 $ 6,955
=================
CASH AT BEGINNING
OF PERIOD 1,807 12
------------ ------------
CASH AT END OF PERIOD $ 6,955 $ 1,846
============ ============
The accompanying notes are an integral part of these financial statements
8
CORPORATE DEVELOPMENT CENTERS, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2000 AND 1999
NOTE A: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Company was incorporated on August 29, 1995
under the laws of the state of Nevada. The
business purpose of the Company is to provide
executive office facilities and services and
provide corporate registered agent service to
Nevada corporations.
The Company will adopt accounting policies and
procedures based upon the nature of future
transactions.
NOTE B: ORGANIZATION COSTS
Organization costs were capitalized and amortized
over 60 months. In January of 1999, the Company
adopted a change in accounting principle and
elected to charge the previously unamortized
amount of organization costs to operations in the
current period. The effect of this change has
been reflected as a separate line item in the
statement of operations.
NOTE C: OFFERING COSTS
The offering costs which were incurred by the
Company in connection with a public stock offering
were offset against the net offering proceeds of
the stock offering.
NOTE D: PUBLIC STOCK OFFERING
In March of 1996, the Company completed the stock
offering and sold 534,250 shares of its common
stock at $.08 per share and received net proceeds
of $30,593 from that offering. The net proceeds
will be used to provide executive office
facilities and services and provide corporate
registered agent service to Nevada corporations.
NOTE E: INCOME TAXES
No provision for income taxes has been recorded in
the financial statements as the Company has
incurred net operating losses from the date of
inception through the current year. The Company
has net operating losses totaling $60,138 and
$49,047 that may be used to offset future taxable
income.
9
CORPORATE DEVELOPMENT CENTERS, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2000 AND 1999
NOTE F: OFFICE EQUIPMENT AND DEPRECIATION
Office equipment is carried at cost. Expenditures
for the maintenance and repair are charged against
operations. Renewals and betterments that
materially extend the life of the asset are
capitalized.
Depreciation of the equipment is provided for
using the straight-line method over the estimated
useful lives for both federal income tax and
financing reporting.
All of the office equipment was sold and the
existing operations were discontinued in 1997.
The sale of the equipment resulted in a loss of
$5,091.
NOTE G: RELATED PARTY TRANSACTIONS
The Company retained a shareholder to assist with
the formation of the Company and issued 200,000
shares of its common stock for these services.
These services were valued at $2,000 or $.01 per
share.
The Company paid cash to a shareholder in the
amount of $2,500 in connection with the formation
of the Company and the preparation and
implementation of the business plan.
The Company has maintained an office at the office
of a shareholder during the 1999 and 2000 fiscal
year. The fair market vale of this office rent
has been reflected in the statement of operations
at $100 per month. The shareholder has agreed to
contribute this amount to the Company as
additional paid in capital.
A shareholder loaned $15,000 to the company in
January of 2000 in order to assist the Company
with working capital needs.
NOTE H: USE OF ESTIMATES
The preparation of financial statements in
conformity with generally accepted accounting
principals requires management to make estimates
and assumptions that affect the reported amounts
of assets and liabilities and disclosure of
contingent assets and liabilities at the date of
the financials statements and the reported amounts
of revenue and expenses during the reporting
period. Actual results could differ from those
estimates.
10
NOTE I: CANCELLATION OF SHARES
In November of 1998, in order to have a more
favorable capital structure, certain
shareholders/officers elected to cancel previously
issued shares of common stock. Of the 500,000
shares that were cancelled, 400,000 shares were
previously purchased by these
shareholders/officers at $.01 per share and
100,000 were issued to a shareholder/officer for
services rendered and valued at $01 per share.
11
Item 2. Management's Discussion and Analysis or Plan of Operations
Plan of Operations
The Company was incorporated in the state of Nevada on August 29,
1995. At its inception, the Company was formed for the purpose
of offering full service executive office space combined with
other business services such as reception desk services, photo
copying services, postal services and other services needed for a
business executive to operate a free standing office.
The Company initiated its business plan in 1996 but proved
unprofitable and closed operations in 1997. Since that time, the
Company has been investigating ways to get back into the
executive office space business. The Company has also been
investigating other products and/or services in which it might
engage that have potential for profit.
For the next 12 months, the Company will continue to seek out
business opportunities in which it can engage and/or operating
companies that it can acquire. At March 31, 2000, the
Company had working capital of $6,955, enough to meet the cash
requirements of the Company for approximately six months. We
believe the Company will need to raise an additional $7,000 by
selling additional shares or by borrowing in order to have
sufficient capital to meet its needs for the next 12 months.
Since the cease of operations in 1997, the Company has had
extremely limited working capital which it has obtained through
additional investment in the Company by principal shareholders.
The Company can only continue to exist by the continued
willingness of principal shareholders to fund the maintaining of
the Company. In January, 2000, the Company borrowed $15,000 from
a shareholder in order to continue meeting the cash demands of
the Company.
Management believes that funding sources will continue to be
available to meet the anticipated needs of the Company's
operations through at least the next 12 months. Even though the
Company does not at the present time have any understandings or
agreements with any persons or entities to provide such funding,
shareholders having an interest in seeing that the Company
remains a viable business entity have been willing to provide
funds to the Company in the past either through purchasing
additional stock or by loaning money to the Company. However,
there can be no assurances to that effect, as the Company has no
revenues and the Company's need for capital may change
dramatically if it acquires an interest in a business opportunity
during that period. It should also be noted that the Company is
now obligated to satisfy the costs associated with filing the
required reports under the Exchange Act of 1934. It appears at
the present time that these costs will also have to be met
through the continued sale of stock or by borrowing additional
funds. The Company's current operating plan is to (i) handle the
administrative and reporting requirements of a public company;
and (ii) search for potential business, products, technologies
and companies for acquisition.
12
CAUTIONARY STATEMENT FOR PURPOSES OF THE "SAFE HARBOR" PROVISIONS
OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
From time to time, the Company will make written and oral
forward-looking statements about matters that involve risk and
uncertainties that could cause actual results to differ
materially from projected results. Important factors that could
cause actual results to differ materially include, among others:
- - General domestic economic and political conditions
- - Changes in laws and government regulations, including without
limitation regulations of the Securities and Exchange
Commission
- - The availability and timing of receipt of necessary outside
capital
- - Other risk factors described from time to time in the
Company's filings with the Securities and Exchange Commission.
Many of these factors are beyond the Company's ability to control
and predict. Investors are cautioned not to place undue reliance
on forward-looking statements. The Company disclaims any intent
or obligation to update its forward-looking statements, whether
as a result of receiving new information, the occurrence of
future events, or otherwise.
13
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
None
Item 2. Changes in Securities
None
Item 3. Defaults upon Senior Securities
None
Item 4. Submission of Matters to a Vote of Security Holders
None
Item 5. Other Information
None
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
Exhibit 27.1 - Financial Data Schedule
(b) Reports on Form 8-K
None
SIGNATURES
In accordance with the requirements of the Securities and
Exchange Act of 1934, the Registrant has duly caused this
report to be signed on its behalf by the undersigned,
thereunto duly authorised.
CORPORATE DEVELOPMENT CENTERS, INC .
Date: February 5, 2001
By: /S/ Richard M. Bench
Richard M. Bench, President
14